All Forum Posts by: Jim Lou

he lied on the sellers disclosure multiple times. He put in a bathroom on the 3rd floor without a permit and didn't disclose the addition on the disclosure. He also knew about knob and tube as it was listed on his inspection report from 2003, but said there was none on his disclosure. I don't think he has a case

I'm in Pennsylvania if that matters. Basically I asked the seller for a 1% commission if I brought him a buyer (my partner). Since the price we negotiated was below his break even he declined a commission for me and I agreed since I was getting a stake in the property anyway. From what I'm reading, if we signed a contract giving me a commission or if I actually collected a commission that would be illegal. I did neither. We found a lot in the inspection and now the seller is all sour since we walked since he wouldn't lower the price due to knob and tube found. He is threatening to keep the earnest money and is refusing to sign the release be he said I was illegally acting as a realtor. Even if I was, which I wasn't, could he keep my partners money for my negligence?

I have a financial interest in a property?

Here's the scenario. I found a fsbo property for my buddy and he agreed to give me a 10% stake in the property if I negotiated a good price for him. Now the seller, since the deal didn't work out, is accusing me of practicing without a license. Is what I did legal? Thanks in advance

yeah it has worked out really well. The tenants have gotten to know one another better due to it and some have actually seem to become friends, which I'm hoping also helps with retention rates. I've also found that at my larger houses, 5-6 brs, dropping off 2 large pizzas and a 12 pack of beer once a month or so, has also helped relations between tenants and myself. I've gotten many referrals this way for other tenants, and it also seems the tenants bother me less with menial tasks. 

Any other ideas anyone has? I feel like a lot of people come here to complain about tenants, but just throwing them a bone (or a beach house) seems to go a long way. We all know people despise the landlord bc were typically their biggest expense, I'm just trying to mitigate that as much as possible.  After all, they are our clients and we need to maintain that relationship just like an account manager at any business would. I feel like a lot of landlords forget that. 

So I had a great idea this year to generate some additional rental income. I have some rental properties targeted to mostly young professionals in Philadelphia. My tenants are all highly educated, well qualified, and gainfully employed. I have in total 20 tenants. When each tenant signed the lease I told them that they would each have exclusive use of a beach house that I rented for them at the jersey shore. I was able to raise rent $50/tenant/month for this option resulting in approx $12,000 in additional income. 16 of the 20 tenants used the house this summer and myself and my fiancée also used it on days that the tenants weren't able to. 

So my question is this: where on my schedule E would i deduct the rental? Is this legal? I paid $15000 for the rental for the season and would only be deducting 12,000 of the 15000 paid due to some personal use. Does anyone see any potential issues that could arise? 

As of now I haven't profited from doing this, however next year I would like to organize it better and hope to make a nice profit. Not to mention when I give tenants the option for this deal most love it and I've reduced vacancies drastically. 

Please advise as I think I might be onto an amenity that would certainly increase my revenue and decrease vacancies. 

Thanks in advance!

anyone? The formal offer is coming in tonight. I'd like some reassurance as this is my first flip

I know comps are the most conventional way to go. But with FHA financing being very lax, I was wondering about valuing duplexes based more on what they're producing then comps. Can someone do a rough valuation and see if my offer I reviewed would be worth it going toward as I don't really need the cash but I can use it to reinvest at 10-15% ROI.

Here's the details:

240 sumac st 19127

Purchased for 180k in 9/2014

20k renovation

Rents are 1300 and 1500 

Taxes 2700

Ins 1200

I was offered 325k of which after realtor fees, transfer taxes and 10% cap gains I'll net approx 95k. My current 30 yr fixed mortgage is $1350/mo. Would you keep it or flip it at this price?

thanks andy

Do I have to pay for title insurance every time I refi?

I need an honest mortgage broker that is going to actually communicate promptly with me. I did 2 loans this year and both guys were terrible. I'll spare the details but I'm looking for someone that is on the ball and who isn't going to screw me. I'm looking for someone to build a relationship with for my fathers, fiancées, and my properties.  I currently have 2 refi's and 1 new purchase I need done ASAP.  I also have several friends that I consult who also need financing.  Please inbox me with details.